Rubrik (NYSE: $RBRK), a data security vendor, released its fourth quarter fiscal 2025 results to a positive market reaction. Here is a deep dive into Rubrik’s latest earnings report.
Rubrik Reports Q4 Results
For the fourth quarter of fiscal 2025, Rubrik reported total revenue of $258.1 million, a 47% YoY increase, and above estimates of $233.1 million. The non-GAAP net loss per share shrank to $0.18 compared to a $.152 loss per share the previous year, beating estimates of $0.30 loss per share.
Subscription revenue in Q4 increased 54% YoY to $243.7 million, while the non-GAAP gross margin increased to 79.7% from 77.7% the previous year. At the end of the quarter, subscription Annual Recurring Revenue (ARR) increased 39% YoY to $1,092.6 million.
Rubrik ended Q4 with $83.6 million in cash flow from operations compared to $12.8 million the previous year, and $75.2 million in free cash flow compared to $8.7 million last year. As of the end of Q4, it had $705.1 million in cash and cash equivalents.
Full-Year Highlights
For the full year, revenue increased 41% YoY to $886.5 million, while the non-GAAP net loss per share was $1.57 compared to a $5.72 loss per share the previous year. Full-year subscription revenue increased 54% YoY to $828.7 million.
The full-year non-GAAP gross margin came in at 78.0%, an increase from the 77.2% reported the previous year. Meanwhile, the full-year cash flow from operations was $48.2 million compared to a negative of $4.5 million last year, while free cash flow came in at $21.6 million compared to a negative of $24.5 million the previous year.
Rubrik Issues Optimistic Outlook
For the first quarter of fiscal 2026, Rubrik expects revenue of $259 million to $261 million, and a non-GAAP loss per share of $0.3 to $0.31.
In fiscal 2026, Rubrik expects subscription ARR of $1,350 million to $1,360 million, and total revenue of $1,145 million to $1,161 million. It expects a non-GAAP loss per share of $1.23 to $1.13, and free cash flow of $45 million to $65 million.
Other Business Highlights
As of the end of the financial year, Rubrik saw a 29% YoY increase in the number of customers with a subscription ARR of $100K or higher to 2,246.
The company also launched a new security product called Turbo Threat Hunting, which allows organizations to scan up to 75,000 backups in less than 60 seconds to find a clean recovery point across their entire data set.
Rubrik (RBRK) Market Performance
Following the revenue and earnings beat, RBRK shares soared 18.98% in pre-market trading to $65.76 on Friday, March 14, 2025 as of 9:17 AM EDT. As of Thursday’s closing, the stock is up 43.21% in the past 12 months, and 81.25% in the past six months. However, the stock has dipped 15.42% year to date.
RBRK shares closed trading on Thursday below the 50-day moving average of $68.04, but above the 200-day moving average of $46.54.
Analysts are optimistic about the future of RBRK, giving the stock a strong buy rating. They forecast an average price of $80.60, which is a 45.80% upside based on Thursday’s closing price of $55.28. The analysts give a wide range of price targets, with a high of $90, and a low of $70.
Should You Add RBRK Shares To Your Portfolio In 2025?
Rubrik’s positive outlook signals management’s optimism regarding the company’s growth trajectory. The company continues on its winning strategy of focusing on the cyber resilience industry, with projected growth in revenue and subscription ARR. Additionally, the recent results highlight an improvement in operating leverage, and cash flow. Based on its recent results, and positive outlook, adding RBRK to your portfolio could potentially pay off in the medium term.
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